Getting the Band Back Together

Well this weekend marked a reunion of sorts….

No, I am not talking about the cast of Friends, or the Rolling Stone, but none other than Warren Buffett & Charlie Munger.

See this weekend was the 2021 Berkshire Hathaway annual meeting, live from Los Angeles. And it was good to see Uncle Warren get the band back together.

Last year, Mr. Buffett seemed as if the COVID pandemic had aged him considerably.  On the contrary this year, he looked rested and energetic, and it was great to see him and Charlie exchange quips while answering 3.5 hours of questions from people all over the world. 

Here are my takeaways:

  1. Greg Abel is the next ‘face of the franchise’.  He answered questions in a very Buffett-esque manner, and I thought did an outstanding job.  Now this is just my opinion, but I will not be surprised if it happens.
  1. Lot of wait and see around the amount of money the government is spending these days. And I tend to agree with Munger, if nothing materializes as a result of the continued monstrous cash outlay by the government, it will continue, but if (read to say: inflation) then it will stop.
  1. The Surface Transportation Board decision on the Kansas City Southern merger will be very interesting.  But low interest rates and the swell of cash has led to this bidding war. Speaking of the flood of cash, it has led to these SPAC deals, which are inhibiting Berkshire’s ability to acquire companies.  Essentially a bi-product of takeaway #2 above.
  1. All of these trading apps are making things too easy for ordinary people to make some really foolish decisions.  I agree with the notion, it will end very badly for some.

Looking forward to returning to the Big O! In 2022!

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